Workers’ rights bill becomes frontline as Rayner resignation sparks union–business confrontation

Mace | 7th September 2025 | Lobbying, Policy & Think Tanks, Politics, Trade Associations
LONDON, ENGLAND - MARCH 10: (L-R) Deputy Prime Minister Angela Rayner, Prime Minister Sir Keir Starmer and Foreign Secretary David Lammy smile as they departthe celebrations for Commonwealth Day at Westminster Abbey on March 10, 2025 in London, England. (Photo by Chris Jackson/Getty Images)
LONDON, ENGLAND - MARCH 10: (L-R) Deputy Prime Minister Angela Rayner, Prime Minister Sir Keir Starmer and Foreign Secretary David Lammy smile as they departthe celebrations for Commonwealth Day at Westminster Abbey on March 10, 2025 in London, England. (Photo by Chris Jackson/Getty Images)

Labour’s Employment Rights Bill is under pressure after Angela Rayner’s exit. Unions accuse Starmer of weakening core pledges like fire and rehire and day-one rights.

Labour’s Employment Rights Bill has become the focus of a renewed lobbying battle following the resignation of Deputy Prime Minister Angela Rayner. Trade unions expressed concern that Rayner’s exit, along with the sacking of employment rights minister Justin Madders, could lead to the watering down of key worker protections.

At the TUC conference in Liverpool, union leaders warned the government not to abandon promises to outlaw exploitative fire and rehire practices and to guarantee employment rights from the first day of a job. Several unions accused Labour of backtracking already, citing exemptions in the fire and rehire measures tabled in the House of Lords.

Business groups are now stepping up their lobbying efforts. The Federation of Small Businesses and others are urging Labour to accept Lords amendments introducing a six-month qualifying period before new employees can bring unfair dismissal claims. They argue that the original day-one rights plan imposes costs and uncertainty on small employers.

The government has so far insisted that the bill will remain intact. Incoming employment rights minister Kate Dearden, formerly of the Community union, has said the legislation will go ahead as planned. But some unions say her appointment is not enough to offset the removal of Rayner and Madders from key roles.

Among union leaders there is concern that internal reshuffles …

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